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Wholesalers, to remain successful in the future, must...

Wholesalers, to remain successful in the future, must. Form strategic alliances Maximize the use of relevant new technologies Maintain an appropriate service package Adapt quickly to anticipated changes in the marketplace. Retailers.

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Wholesalers, to remain successful in the future, must...

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  1. Wholesalers, to remain successful in the future, must... • Form strategic alliances • Maximize the use of relevant new technologies • Maintain an appropriate service package • Adapt quickly to anticipated changes in the marketplace

  2. Retailers The third major player in many consumer goods and services supply chains are retailers. They also come in many sizes and shapes, each looking for a niche to best service the needs and wants of their target market(s).

  3. Retailing and its importance • Retailing consists of all business activities concerning the sale of goods and services to ultimate consumers. • Retailing includes obvious businesses like department and specialty stores, but also hotels, movie theatres, restaurants, and professional sports.

  4. Retailing and its importance • Retailing institutions = over 1,500,000 in the USA • Retail Sales 1.8 to 3.0 trillion (US) [ problem of definitions] • Personnel working in retailing exceeds 18,000,000

  5. Specialty stores Department stores Supermarkets Convenience stores Mass merchandisers Big box retailers/Power retailers/category killers Hypermarkets Manufacturer’s outlets Direct mail & catalogues Electronic shopping (QVC) Internet shopping Door-to-door retailing Vending machines Retailers are constantly changing their marketing mix in response to consumers and environmental changes. Classifying Retailers: Conventional Titles

  6. Classifying retailers: A more useful approach High Turnover Z Y High Margin Low Margin X X = Lazarus Y = Wal-Mart Z = United Dairy Farmers Low Turnover

  7. Classifying retailers: A more useful approach Wide X Y Deep Shallow Z X = Lazarus Y = Wal-Mart Z = United Dairy Farmers Narrow

  8. Classifying retailers: A more useful approach High Price Z X Low Service High Service Y X = Lazarus Y = Wal-Mart Z = United Dairy Farmers Low Price

  9. If we could combine the above three charts, we could accurately describe any type of retailer • Margin • Turnover • Depth • Breadth • Service • Price • In-store • Non-store

  10. Retail Evolution • How do we explain the current and evolving mix of retail institutions in the United States, or any other country in the world? • Wheel of Retailing • The Dialectic process • The G-S-G Theory • The Darwinian Theory • The Institutional Life Cycle Theory Explain Each

  11. The Future of Retailing • Consolidation • Integration • Strategic alliances • Diversification • Internationalization • Transformation

  12. The Final Dimension of the Supply Chain LOGISTICS &PHYSICAL DISTRIBUTION Manufacturer Retailer Wholesaler

  13. Logistics & Physical Distribution MIS

  14. Logistics Logistics Management Materials Management Systems Concepts Total Cost Concept Organizational Materials flows Physical Distribution Warehousing subsystems Material-handling sub systems Inventory control subsystems Order-processing subsystems Transportation subsystems Motor vehicles Trains Airplanes Pipelines Ships Combinations Logistics & Physical Distribution

  15. LogisticsLogistics managementMaterials managementPhysical distributionTotal cost conceptCustomer services MAJOR CONCEPTS DISCUSS

  16. DEFINITIONS • LOGISTICS: the entire process of moving raw materials and components into the firm, in-process inventory through the firm, and finished goods out of the firm • LOGISTICS MANAGEMENT: planning, implementing and controlling the efficient flow of both inbound materials and outbound finished products • MATERIALS MANAGEMENT: concerned with bring raw materials and supplies to the point of production and moving in-process inventory through the firm • PHYSICAL DISTRIBUTION: the broad range of activities concerned with efficient and effective movement of finished goods from the end of the production line to the buyer.

  17. Product availability Speed / JIT Consistency Reliability Accuracy Quality Information / Communication Convenience History Facilitating services, such as... Palletization Pre-ticketing Advanced Shipping Notices Financial stability Leading edge thinking and technology Customer Services

  18. Not interested in individual components per se. Concerned with the bottom line total cost for a set level/package of services Because of system interactions, minimizing each individual cost often does not minimize the overall costs Must study the impact of each function on all the others to determine the best mix Computer simulations and dynamic programming are being used to measure these interactions Trade off analysis studies the service/cost implications of system interactions: Larger ships reduce transportation costs, but increase warehousing, shortage and risk of obsolescence TOTAL COST CONCEPT

  19. PHYSICAL DISTRIBUTION ACTIVITIES OUTBOUND TRANSPORTATION CUSTOMER ORDER INVENTORY MANAGEMENT ORDER ENTRY STORAGE & MATERIAL HANDLING AT WAREHOUSE PACKAGING & SHIPPING INBOUND TRANSPORTATION FROM SUPLIERS

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